The Nigerian National Petroleum Corporation (NNPC) Limited has commenced Liquefied Natural Gas (LNG) exports to two Asia countries, China and Japan.
According to Olufemi Soneye, spokesperson for NNPC, the company has successfully shipped LNG cargo to both Asian countries on a Delivered Ex-Ship (DES) basis, which requires the seller to take responsibility for shipping and insurance until the products reach the specified port of delivery.
Soneye revealed that the achievement was made possible through the collaboration of NNPC’s Downstream subsidiaries, NNPC LNG Ltd and NNPC Shipping Ltd., which delivered the first DES LNG cargo to Japan on June 27, 2024.
Since then, NNPC has expanded its footprint to China, delivering one LNG cargo on a DES basis.
NNPC has been actively involved in LNG trading since 2021, with over 20 cargoes traded into European and Asian markets on a Free on Board (FOB) basis.
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The company’s Executive Vice President of Downstream, Dapo Segun, disclosed the benefits of the DES system, which allows NNPC to capture more market shares, build in-house capacity, and increase brand recognition globally.
The Managing Director of NNPC Shipping, Panos Gliatis, stressed the importance of collaboration between NNPC LNG Ltd and NNPC Shipping Ltd in executing LNG supplies on a DES basis, which has strengthened NNPC Shipping’s position as a world-class shipping provider in the LNG sector.
Findings indicated that the development was part of Nigeria’s strategic shift from oil to gas, driven by the country’s vast gas reserves.
President Tinubu has enacted new executive orders to bolster the gas industry, including the inauguration of three gas plants in Delta and Imo States, aimed at increasing gas production by at least 25 per cent.
In addition, NNPC has entered an agreement with Golar LNG to establish offshore LNG production in the Niger Delta, which will harness approximately 400-500 million standard cubic feet per day (mmscf/d) of gas.
